Judges : SUKUMARAN
L.R.RANGAIER SONS (P) LTD. - Appellant
Versus
RUKHIYABI - Respondent
Case No : C.R.P. No. 27 of 1982
Decided On : 02/08/1982
Advocates Appeared :
V.P. Mohankumar; K.P. Sreekumar; For Petitioner M.C. Sen; For Respondent
eviction - landlord - business requirement - Rent Control Act, Section 11(3) - The court discussed the requirement of specific and clear pleadings in a petition by a landlord seeking eviction on the ground of bona fide requirement of the building. It emphasized the need for the landlord to disclose the particulars relating to the business proposed to be set up in the petition itself, in order to evaluate the bona fides of the landlord. The court highlighted the legal provisions under the Rent Control Act and the necessity for compliance with statutory requirements before starting a business, and directed that the actual eviction would take effect only after obtaining the requisite license from the Rubber Board to deal in rubber in the premises in question.
Fact of the Case:
The respondent-landlord sought eviction of the tenant on grounds of arrears of rent and bona fide requirement for starting a business for her husband. The tenant contested both claims, and the Rent Controller ordered eviction on the ground of bona fide requirement of the landlord, which was upheld by the appellate and revisional authorities.
Finding of the Court:
The court found that the landlord's failure to disclose the particulars relating to the business proposed to be set up in the building in the petition itself was fatal to the eviction petition. It directed that the actual eviction would take effect only after obtaining the requisite license from the Rubber Board to deal in rubber in the premises in question.
Issues: The issues included the requirement of specific and clear pleadings in a petition by a landlord seeking eviction on the ground of bona fide requirement of the building, and the necessity for compliance with statutory requirements before starting a business.
Ratio Decidendi: The court emphasized the need for the landlord to disclose the particulars relating to the business proposed to be set up in the petition itself, in order to evaluate the bona fides of the landlord. It highlighted the legal provisions under the Rent Control Act and the necessity for compliance with statutory requirements before starting a business.
Final Decision: The revision petition was dismissed, with the direction that the actual eviction would take effect only after obtaining the requisite license from the Rubber Board to deal in rubber in the premises in question.
1. The respondent-landlord in this revision petition sought eviction of the tenant-revision petitioner on twin grounds, arrears of rent and bona fide requirement for starting a business for her husband Both claims were contested by the tenant.
2.As quite often happens, the details of the business proposed to be conducted in the building the eviction of which was sought, had not been indicated in the petition. The defect, a serious one, as would be discussed in greater detail later, was, however, sought to be rectified at the evidence stage. The petitioner did not enter the witness box but her husband did; and was examined as pw. 1. He attempted to elucidate the averment in the petition by stating that the business which he proposed to conduct was that of a dealer in rubber. The source for the capital was found by him in the twenty five sovereigns which his wife owned and which, according to him, were sufficient as resource mobilisation for the business.
3. The claim for eviction on grounds of arrears of rent was negatived by the Rent Controller noting that the entire arrears had been paid. This claim does not survive for decision in this revision.
4. The Rent Controller, however, ordered eviction on the ground of bona fide requirement of the landlord, the requirement being the starting of a business by her husband. The contention of the tenant about the dependence on the building for making out a livelihood of the tenant from the income therefrom was negatived, and correctly, on the ground that no such plea was raised in the objection filed by the tenant and that there was no evidence in support thereof.
5. The order of the Rent Controller was challenged in appeal. The absence of a plea that the petitioner's husband was depending on her for financial help to start the business, the omission of the petitioner in entering the witness box and giving her evidence to establish her bona fides and the paucity of funds which would be required for starting a business in rubber and the admission of pw 1 about his lacking in the necessary capital required for investment in the business which he proposed to carry on, were all highlighted in the appeal before the appellate authority. The appellate authority however, felt that pw 1 did not own or possess any building in Calicut City and in that sense was depending on his wife for a building to carry on his business. The building in question, the appellate authority observed, was suitable for the trade in rubber and this fact had not been disputed. It felt that the evidence of pw.1 indicated that the ornaments of the wife could be used for raising funds to start the business and in that view of the matter the criticism about pw.1 lacking in funds for the business proposed to be set up was without much substance. The further reasoning relating to the lack of bona fides based on the assumed absence of funds for starting the business was accordingly repelled.
6. The appellate authority also did not appear to have had any clear idea about the requirements of a business in rubber, about the formalities to be gone through before a person could become a dealer in rubber and a fair substantial investment that would be necessary for running such a business.
7. The contentions raised before the revisional authority also were unsuccessful. The revisional authority was disinclined to upset the findings entered by the Rent Controller and the appellate authority It, however, evinced a realistic approach when it considered the question about the lack of necessary funds for starting the business in question. The revisional authority observed, and according to me, correctly as follows:
"The contention of the learned counsel for the revision petitioner that a man can think of starting a business only if he has got ready cash with him cannot be accepted in view of the various loan-schemes available now-a-days. The business field has undergone substantial changes in these days and one would be able to star
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